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I feel rather unqualified to answer this, but "sláinte" still sounds like a toast. I don't recall it being used for anything else while I was in Ireland. Some languages do share the same word for toasts and sneezes, but it seems Gaeilge isn't one of them.

Apparently it's "Dia Linn" (God be with us), based on a bit of web research.

I found an interesting discussion here (and learnt a few things as well!):http://www.irishgaelictranslator.com/translation/topic101946.html